Dogecoin (DOGE) Price Drops Below $0.17, Reversing Earlier Gains

Dogecoin has entered a volatile trading phase as its price drops below $0.17, recovering gains made earlier in the week

Dogecoin (CRYPTO: DOGE) price slid further below the $0.17 mark on Thursday, rolling back some of the gains made earlier in the week as the meme coin entered a volatile trading phase.

This shift in momentum comes just days after analysts began suggesting that DOGE could outpace previous cycle highs, setting price targets as high as $3. However, a more than 10% increase in the last days broke the descending trendline and returned the meme coin to the bearish signals of the March final session.

Technical metrics, including the RSI and MACD, now show strong downside pressure, while on-chain data reveals continued outflows from exchanges.

After trading as high as $0.1717, Dogecoin had fallen to $0.1614 by the time of writing, notching up a 6.05% decrease in the last 24 hours. This drop follows a downward movement throughout the day, losing some of its recent weekly gains. While trading volume had risen by 2.27% to $1.03 billion, this uptick wasn't enough to halt the price decline.

Here's more on Thursday's volatile crypto moves.

Dogecoin Price Today:

* **Dogecoin (DOGE) price:** $0.1614 (down 6.05%)

* **Dogecoin market cap:** $24 billion

* **Dogecoin fully diluted valuation:** $23.99 billion

* **Token circulation:** 148.65 billion DOGE (same as total supply)

* **Current volume to market cap percent:** 4.28% (liquidity is moderate, current price suggests that the sentiment is currently bearish in the market)

Dogecoin Is Now Unlikely To Recover And Move Up The Chart Unless Sentiments Turn Around Or Perhaps A Flow Of Capital Influx Occurs

Dogecoin has no cap on the number of tokens that can be produced.

Technical Indicators Point To Further Weakness

The short-term chart analysis shows continued bearish pressure. According to the technical indicators, the Relative Strength Index (RSI) within 4-hour time frame has fallen to 24.54, rendering the asset in oversold territory.

MACD provides further affirmation of the bearish outlook. MACD and signal lines are further into negative territory, while the histogram indicates that bars are red. These signals indicate that selling pressure continues to prevail, with Dogecoin possibly struggling to reverse the recent decline and reclaim the support levels of $0.18.

Exchange Outflows Reflect Lingering Market Caution

On-chain data from Coinglass reveals consistent net outflows from Dogecoin spot markets. The red bars on the netflow chart have persisted from November through March, indicating sustained capital movement away from exchanges.

During November, DOGE recorded an inflow spike above $200 million, but this was followed by continuous outflows, with several sessions exceeding $100 million.

These outflows coincide with the drop of DOGE’s price from $0.50 in the late quarter of 2023. It continues that the volume of new funds has not returned significantly in recent market sessions, indicating that trading has remained cautious lately.

However, looking at past performance, Dogecoin may not be able to recover and move up the chart unless sentiments turn around or perhaps a flow of capital influx occurs. Currently, traders are still waiting for clearer signals before engaging in trading in larger positions.

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